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Description

When you enroll for courses through Coursera you get to choose
for a paid plan or for a free
plan .

Free plan: No certicification and/or audit
only. You will have access to all course materials except
graded items.

Paid plan: Commit to earning
a Certificate—it's a trusted, shareable way to showcase your new
skills.

About this course: This second course in the specialization will last six weeks and will focus on the second main building block of financial analysis and valuation: risk. The notion of risk and statistics are intimately related and we will spend a fair amount of time on the development of some statistical concepts and tools, namely distribution theory and regression analysis. This time will be well spent because these concepts and tools are also commonly used in many applications in the real world. The foundational idea of diversification will then be used to develop a framework for evaluating risk and establishing a relationship between risk and return. Apart from developing a keen ap…

Frequently asked questions

When you enroll for courses through Coursera you get to choose
for a paid plan or for a free
plan .

Free plan: No certicification and/or audit
only. You will have access to all course materials except
graded items.

Paid plan: Commit to earning
a Certificate—it's a trusted, shareable way to showcase your new
skills.

About this course: This second course in the
specialization will last six weeks and will focus on the second
main building block of financial analysis and valuation: risk. The
notion of risk and statistics are intimately related and we will
spend a fair amount of time on the development of some statistical
concepts and tools, namely distribution theory and regression
analysis. This time will be well spent because these concepts and
tools are also commonly used in many applications in the real
world. The foundational idea of diversification will then be used
to develop a framework for evaluating risk and establishing a
relationship between risk and return. Apart from developing a keen
appreciation of risk for making thoughtful decisions in an
institutional context, this course will contain a lot of material
and examples that will enable the learner to make smart personal
investing decisions. The course will again have time included for
assimilation and two final exams. This course is the second in a
sequence of four courses that comprise a Specialization on
Valuation & Investing.

Who is this class for: This course is an
intermediate graduate level course for working professionals or
learners interested in a career in business. It will also prepare
you well for a graduate program in business.

Basic Info Course 2 of 4 in the Introduction to Finance: Valuation
and Investing Specialization Level Intermediate Commitment It will
take between 5-10 hours a week for about six weeks to master the
content. Language English How To Pass Pass all graded assignments
to complete the course. User Ratings 4.7 stars Average User Rating
4.7See what learners said Coursework

Each course is like an
interactive textbook, featuring pre-recorded videos, quizzes and
projects.

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University of Michigan The mission of the University of Michigan is
to serve the people of Michigan and the world through preeminence
in creating, communicating, preserving and applying knowledge, art,
and academic values, and in developing leaders and citizens who
will challenge the present and enrich the future.

Syllabus

WEEK 1

Overview of Specialization & Course

This module contains detailed videos and syllabi of both the
Specialization and this course. This specialization has been
designed to enable you to learn and apply the powerful tools of
modern finance to both personal and professional situations. The
courses within progress linearly and build on each other and it is
important for you to get an understanding of why this
specialization may be relevant to your goals, again both personal
and professional. Please review the videos and syllabi as they will
give you a sense of the specialization and how this specific course
fits within. The teaching style and philosophy of the instructors
is also presented to you (hopefully) in sufficient detail. Most
importantly, it will give you enough information for you to make a
decision about whether you want to take this course, by itself or
as part of a specialization.

11 videos, 3 readings expand

Reading: Help us learn more
about you!

Video: Specialization: An
Overview

Video: Specialization: A
Collaboration

Video: Specialization:
Content and Structure

Video: Specialization:
Courses

Video: Specialization:
Process

Video: Specialization:
Philosophy

Video: Specialization:
Prerequisites

Video: Specialization:
Assumptions

Video: Specialization: Thank
You!

Video: Specialization: Closed
Captioning

Reading:
Specialization-Syllabus

Video: Welcome to Risk &
Return!

Reading:
Course2-Syllabus

Module 1
Risk and return is best understood in a real context; we will
therefore spend the first module on understanding the most common
vehicle of investment: bonds.

7 videos expand

Video: 1.1 Financing: Bonds
and Stocks

Video: 1.2 Zero-Coupon
Government Bonds

Video: 1.3 Government Coupon
Bonds

Video: 1.4 Bond Pricing:
Calculations

Video: 1.5 Sources of Risk in
Bonds

Video: 1.6 Market Data on
Bonds

Video: 1.7 Recap Module
1

Graded: Assignment 1Graded: Assignment 2

WEEK 2

Module 2
This second module will be spent understanding the features and
valuation of stocks.

9 videos expand

Video: 2.1 What is a
Stock?

Video: 2.2 Stock
Pricing/Valuation

Video: 2.3 Dividend &
Growth Stocks

Video: 2.4 The Engine of
Growth

Video: 2.5 Valuation: the Big
Picture

Video: 2.6 What is
Growth?

Video: 2.7 Good or Bad
Growth?

Video: 2.8 Stocks: Market
Data

Video: 2.9 Recap Module
2

Graded: Assignment 3Graded: Assignment 4

WEEK 3

Module 3
In this module, we will develop a theory of risk based on the
intuitive concept of diversification. Since knowledge of Statistics
is key to understanding risk, we will introduce some important
concepts of applications.

8 videos, 1 reading expand

Video: 3.1 Why Risk &
Return?

Video: 3.2 Valuation &
Risk Estimation

Video: 3.3 What is Risk?

Video: 3.4 Statistics: Mean
& Variance

Video: 3.5 Statistics:
Covariance & Correlation

Video: 3.6 Statistics:
Regression

Video: 3.7 Back to Risk:
Diversification

Video: 3.8 Recap Module
3

Reading:
Note-ReviewofStatistics

Graded: Assignment 5Graded: Assignment 6

WEEK 4

Module 4
In this module, we will introduce one of the most widely known
models called CAPM (Capital Asset Pricing Model), which provides a
simple and powerful relation between risk and return.

7 videos expand

Video: 4.1 Diversification: 2
Assets

Video: 4.2 Diversification:
Two Assets Intuition

Video: 4.3 Diversification:
Bottom Line

Video: 4.4 Measure of Risk:
Beta

Video: 4.5 Risk & Return:
CAPM

Video: 4.6 Risk & Return:
Market Analysis

Video: 4.7 Recap Module
4

Graded: Assignment 7Graded: Assignment 8

WEEK 5

Module 5
This week will be spent on a short wrap video of the course and
time for assimilation and review by learners to be prepared to take
the final exams. In the past, learners have really valued this time
and hence it is built into this on-demand structure as well.

1 video expand

Video: Risk & Return:
Wrap Up!

WEEK 6

Module 6
This is finals week. Please note that there are two exams and you
need to attempt both.